U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
AND EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1999
[ ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
AND EXCHANGE ACT OF 1934
For the transition period from ___________ to __________
Commission File Number: 33-93132
La Jolla Diagnostics, Inc.
------------------------------------------
(Exact name of small business issuer as specified in its charter)
California 94-2901715
---------- ----------
(State or other jurisdiction (IRS Employer
of incorporation or organization) identification No.)
1020 Prospect Street, Suite 210, La Jolla, California 92037
------------------------------------------------------------
(Address of principal executive offices and zip code)
(800) 454-6790
--------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: As of February 12, 2000
La Jolla Diagnostics, Inc. had 20,378,219 shares outstanding of the
registrant's common stock, no par value.
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<Page 1>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
FORM 10-QSB
QUARTER ENDED DECEMBER 31, 1999
INDEX
Page
PART I FINANCIAL INFORMATION
Item 1 Financial Statements (unaudited):
Condensed Consolidated Balance Sheets as of December 31, 1999
(unaudited) and June 30, 1999 2
Condensed Consolidated Statements of Operations for the Six
Months Ended December 31, 1999 and 1998 (unaudited) 3
Condensed Consolidated Statements of Operations for the Three
Months Ended December 31, 1999 and 1998 (unaudited) 4
Condensed Consolidated Statements of Cash Flows for the Six
Months Ended December 31, 1999 and 1998 (unaudited) 5
Notes to Condensed Consolidated Financial Statements (unaudited) 6 - 7
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 7 - 11
PART II OTHER INFORMATION
Item 1 Legal Proceedings - None 12
Item 2 Changes in Securities - None 12
Item 3 Defaults Upon Senior Securities - None 12
Item 4 Submission of Matters to a Vote of Security Holders -
None 12
Item 5 Other Information - None
Item 6 Exhibits and Reports on Form 8-K - Exhibit 17.2 13
SIGNATURES 14
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<Page 2>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1999 AND JUNE 30, 1999
(A Development Stage Company)
December 31, June 30,
1999 1999
(unaudited)
---------- ----------
ASSETS
CURRENT ASSETS:
Cash $ 37,121 $ 208,555
Accounts receivable 4,364 207
Advances to officer 6,658 6,670
Inventory - current portion 784,285 786,353
Prepaid expenses 19,483 25,960
---------- ----------
TOTAL CURRENT ASSETS 851,911 1,027,745
Property and equipment, net 84,987 87,829
Inventory 1,240,000 1,240,000
Scientific technology 494,585 512,830
Other assets 3,880 4,590
---------- ----------
$2,675,363 $2,872,994
========== ==========
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 144,086 $ 237,214
Accrued expenses 28,595 27,892
Customer deposits 663 663
Lease obligations, current portion 1,628 1,418
Loans payable 70,757 91,841
---------- ----------
TOTAL CURRENT LIABILITIES 245,729 359,028
---------- ----------
LONG TERM LIABILITIES:
Lease obligation, non-current portion - 616
Minority interest 1,467,738 1,227,937
---------- ----------
TOTAL LONG TERM LIABILITIES 1,467,738 1,228,553
---------- ----------
STOCKHOLDERS' EQUITY:
Common stock, no par value (50,000,000
shares authorized, 20,378,219 and
20,338,219 shares issued & outstanding,
respectively) 13,306,873 13,302,264
Additional paid-in capital 831,247 831,247
Preferred stock, no par value (5,000,000
shares authorized, no shares issued) - -
Retained deficit ($6,765,705 and
$6,437,579 deficit accumulated during
development stage begun December 3, 1993,
respectively) (13,176,224) (12,848,098)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 961,896 1,285,413
---------- ----------
$2,675,363 2,872,994
========== ==========
The accompanying notes are an integral part of these financial statements.
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LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999 AND 1998
(A Development Stage Company)
For The Six Months Ended
December 30,
1999 1998
(unaudited) (unaudited)
------------ ------------
NET SALES $ 30,423 $ 49,962
OPERATING EXPENSES
Cost of products sold 65,843 21,166
Selling and administrative expenses 283,749 230,931
Research and development 5,072 20,128
Consulting services 104,091 39,425
Depreciation and amortization 33,509 6,618
------------ ------------
TOTAL OPERATING EXPENSES 492,264 318,268
LOSS FROM OPERATIONS (461,842) (268,306)
OTHER INCOME (EXPENSES)
Interest expense (8,981) (16,076)
Minority interest 142,697 41,499
------------ ------------
TOTAL OTHER INCOME (EXPENSES) 133,716 25,423
LOSS BEFORE INCOME TAXES (328,126) (242,883)
PROVISION FOR INCOME TAXES - -
NET LOSS $ (328,126) $ (242,883)
NET LOSS PER COMMON SHARE $ (0.02) $ (0.02)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 20,232,049 12,282,749
The accompanying notes are an integral part of these financial statements.
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<Page 4>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(A Development Stage Company)
For The Three Months Ended
December 31,
1999 1998
(unaudited) (unaudited)
------------ ------------
NET SALES $ 20,940 $ 6,015
OPERATING EXPENSES
Cost of products sold 47,318 9,757
Selling and administrative expenses 82,369 136,092
Research and development 4,127 9,959
Consulting services 51,533 350
Depreciation and amortization 16,701 3,309
------------ ------------
TOTAL OPERATING EXPENSES 202,048 159,467
LOSS FROM OPERATIONS (181,108) (153,452)
OTHER INCOME (EXPENSES)
Interest expense (783) (3,813)
Minority interest 57,335 29,868
------------ ------------
TOTAL OTHER INCOME (EXPENSES) 56,552 26,055
LOSS BEFORE INCOME TAXES (124,556) (127,397)
PROVISION FOR INCOME TAXES - -
NET LOSS $ (124,556) $ (127,397)
NET LOSS PER COMMON SHARE $ (0.01) $ (0.01)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 20,232,049 12,614,039
The accompanying notes are an integral part of these financial statements.
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LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(A Development Stage Company)
For The Six Months Ended
December 31,
1999 1998
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (328,126) $ (242,883)
Adjustments to reconcile loss to net
cash used in operating activities
Depreciation and amortization 31,880 6,618
Minority interest (142,697) 168,802
Issuance of stock for services 39,360 63,384
Changes in assets and liabilities
(Increase) decrease in inventories 2,068 (1,000)
(Increase) decrease in accounts receivable (4,156) (7,803)
(Increase) decrease in other assets 7,200 (5,735)
Increase (decrease) in liabilities (113,509) (19,656)
NET CASH USED IN OPERATING ACTIVITIES (179,854) 204,610
CASH FLOWS USED IN INVESTING ACTIVITIES
Advances (to)/from shareholder, net - 1,246
Capital expenditures for property and
equipment (10,793) -
------------ ------------
NET CASH USED FOR INVESTING ACTIVITIES (10,793) 1,246
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock 347,745 -
Proceeds from notes payable, net - 57,991
Payments on capital lease obligations (406) (544)
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES: 347,339 57,447
NET INCREASE (DECREASE) IN CASH (171,434) 20,420
CASH AT BEGINNING OF PERIOD 208,555 1,307
CASH AT END OF PERIOD $ 37,121 $ 21,727
The accompanying notes are an integral part of these financial statements.
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LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(A Development Stage Company)
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements and
related notes have been prepared pursuant to the rules and regulations of
the Securities and Exchange Commission for Form 10-QSB. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments, consisting of a normal recurring nature
considered necessary for a fair presentation, have been included. It is
suggested that these financial statements are read in conjunction with the
financial statements and notes thereto included in the Company's annual report
on Form 10-KSB for the year ended June 30, 1999. The results of operations for
the six month period ended December 31, 1999 are not necessarily indicative
of the operating results for the year ended June 30, 2000. For further
information, refer to the consolidated financial statements and notes
thereto included in the Company's Annual Report on Form 10-KSB for the fiscal
year June 30, 1999.
B. INVENTORIES:
Inventories as of December 31, 1999 and June 30, 1999 are comprised
of the following:
December 31, 1999 June 30, 1999
unaudited
------------ ------------
Antisera at original value $ - $4,150,579
Less Valuation reserve - (2,600,579)
------------ ------------
Antisera products, net 1,541,586 1,550,000
Diagnostic test products 464,829 472,665
Healthcare products 17,870 3,688
------------ ------------
$ 2,024,285 $ 2,026,353
============ ============
C. NET LOSS PER COMMON SHARE:
Net loss per common share is computed by dividing the net loss by the
weighted average number of common shares outstanding during the period. For the
six month period ended December 31, 1999 and 1998, the Company's common stock
equivalents were antidilutive and, therefore, were not included in the
computation of net loss per common share.
In February 1997, the FASB issued Statement of Financial Accounting
Standards No. 128, "Earnings per Share," (SFAS 128) which was required to be
adopted on March 31, 1999. The Company is currently using this method to
compute earnings per share in compliance with SFAS No. 128. Under the new
requirements for calculating primary earnings per share, the dilutive effect of
stock options will be excluded. The impact of SFAS No. 128 has not resulted in
any change to primary earnings per share for the six month period ended
December 31, 1999 and 1998. The impact of SFAS No. 128 on the calculation of
fully diluted earnings per share for these periods is immaterial.
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D. RELATED PARTY TRANSACTIONS:
During the six months ended December 31, 1999 and 1998, various shareholders
and directors of the Company provided consulting and research and
development activities related to the business activities and products of the
company.
In connection with these services, during the six months ended
December 31, 1999 and 1998, the Company recognized research and development
of $5,072 and $20,128 and consulting expenses of $104,091 and $39,425,
respectively.
E. SUPPLEMENTAL CASH FLOW INFORMATION:
Interest and Income Taxes Paid
Cash paid for interest and income taxes for the six months ended
December 31, 1999 and 1998 (unaudited) were as follows:
December 31, 1999 December 31, 1998
------------------ ------------------
Interest $ 9,126 $ 315
Income taxes $ - $ -
F. USE OF ESTIMATES:
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimated and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
THIS QUARTERLY REPORT ON FORM 10-QSB CONTAINS FORWARD-LOOKING STATEMENT THAT
INVOLVE RISKS AND UNCERTAINTIES. THE COMPANY'S ACTUAL RESULTS MAY DIFFER
SIGNIFICANTLY FROM THE RESULTS DISCUSSED IN THE FORWARD-LOOKING STATEMENTS.
FORWARD-LOOKING INFORMATION - GENERAL
This report contains a number of forward-looking statements which reflect
the Company's current views with respect to future events and financial
performance. These forward-looking statements are subject to certain risks
and uncertainties that could cause actual results to differ materially from
historical results or those anticipated. In this report, the words
"anticipates", "believes", "expects", "intends", "plans", "may", "future",
and similar expressions identify forward-looking statements. Readers are
cautioned to consider the risk factors described above and in the Company's
Annual Report on Form 10-KSB for the year ended June 30, 1999, and not to place
undue reliance on the forward-looking statements contained herein, which speak
only as of the date hereof. The Company undertakes no obligation to publicly
revise these forward-looking statements, to reflect events or circumstances
that may arise after the date hereof.
Additionally, these statements are based on certain assumptions that may
prove to be erroneous and are subject to certain risks including, but not
limited to, the Company's ability to introduce new products, the concentration
of the Company's current products, technological change and increased
competition in the industry, the Company's ability to manage its growth, its
limited protection of technology and trademarks, the Company's dependence on
limited suppliers, representatives, distributors, and its dependence on certain
key personnel within the Company. Accordingly, actual results may differ,
possibly materially, from the predictions contained herein.
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<Page 8>
LIQUIDITY AND CAPITAL RESOURCES
The Company, in the past, has financed operations primarily through the
private placement of common stock, issuance of convertible debt, warrant
conversions, issuing warrants to acquire stock in exchange for services
rendered and to a lesser degree from product sales. Based on its current
operating plans, cash generated from projected sales may not generate the
necessary capital to fully support development of the Company's products
through June of 2000 and the Company will continue to employ use of equity
financing to allow the Company to continue its operations. The Company
anticipates that the proceeds from conventional private placements of stock,
issuance of convertible debt and exercise of warrants and options will continue
to enhance working capital.
On September 16, 1998, the Company, through a newly formed subsidiary,
DiagnosTech, Inc. (DTI), purchased the assets and technology of AmTech
Scientific, Inc. (ATS), a privately held diagnostic company. These assets
include a proprietary, patent pending diagnostic test for active
tuberculosis (TB), HIV I and II, H. Pylori, and Hepatitis B. The accuracy and
efficacy of the test has been confirmed in separate clinical trials, and is
currently approved for sale and distribution in several countries with
approvals pending in others.
On May 11, 1999, the Company completed a 504 Reg. D stock offering for
$1 million of its subsidiary, DTI.
Subsequently, DTI engaged in a private placement offering of $4,000,000 of
convertible debentures. Each unit of convertible debenture is convertible
at $1.25 a share. $571,000 has been raised as of December 31, 1999. As of
the date of these financial statements none of the debentures have been
converted into DTI common stock. The proceeds are being used for working
capital with an emphasis on increasing manufacturing capabilities and the
expansion of marketing and sales efforts related to the products acquired by
DTI.
RESULTS OF OPERATIONS.
GENERALLY. With the formation of its subsidiary, DTI, the Company has
reorganized its operational structure. All diagnostic product operations
are now the responsibility of the subsidiary, while the Company will
concentrate on the nutraceutical and over-the-counter (OTC) healthcare products
and related technologies.
To achieve these objectives, the Company is using an improved technology in
formulation and is beginning to aggressively market its products to new and
larger distributors and through a greatly expanded internet presence.
In addition, the Company hopes to see results from the licensing of
proprietary technology used in the formulation of its pharmaceutical
products in the near future.
The Company believes that because of the quality of its existing products
and other products being developed, with its business objectives in place, and
through recent and future funding and projected revenues, it should be able
to enact upon its future growth plans, in the near future.
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<PAGE 9>
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999 AND 1998
For The Six Months Ended
December 31, 1999 December 31, 1998
------------------ ------------------
Revenues $ 30,423 $ 49,962
Cost of products sold (65,843) (21,166)
Other operating expenses (426,421) (290,484)
Loss from operations (461,842) (268,306)
---------- ----------
Net loss $ (328,126) $ (242,883)
========== ==========
The Company experienced a net loss of $328,126 for the six month period
ending December 31, 1999, compared with a net loss of $242,883 for the same
period ending December 31, 1998. On a consolidated basis, the Company had
sales totaling $30,423 for the six months ended December 31, 1999, compared
with $49,962 in sales for the Company for the same period ending December 31,
1998. Cost of product sales and operating expenses for the six months
ended December 31, 1999 were $492,264, compared to $318,268 for the six
months ended December 31, 1998.
FINANCIAL RESOURCES
At December 31, 1999, the Company had current assets of $851,911 which
includes inventory of $17,870 healthcare products, $464,829 diagnostic
products, $301,586 in current antisera inventory and $19,483 in prepaid
expenses.
DIAGNOSTECH, INC.
In September 1998, the Company incorporated a new subsidiary named
DiagnosTech, to develop and market clinical diagnostic products using
immunologic and molecular biologic technologies. DTI has raised $1,434,000
through private placements increasing the minority equity interest (the
percentage not owned by La Jolla Diagnostics, Inc.) to 45 percent. The
proceeds were used to fund DTI's internal operation costs, increase production
capabilities and to market the test products internationally.
RESEARCH AND DEVELOPMENT
The research and development activities being performed by the Company are
designed to discover and screen potential consumer health care and
diagnostic products.
Healthcare & Nutraceutical Products
The Company has begun to use a new proprietary technology, which it believes
is superior to the former technology in the formulation of its health care
products. The thrust of this technology is to maximize product biological
effectiveness and stability. This stability is of particular importance, as
it impacts on the shelf life, and the method of shipping the products. These
technological changes are being used with all the Company's healthcare
products including the re-introduction of Living Water Eye Lotion and
MigraSpray with feverfew, both of which have been extremely well received by
those who are using them.
The company is also in the process of introducing and re-introducing several
other products to its expanded product line
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<PAGE 10>
PRODUCTS NOW BEING MARKETED
MIGRASPRAY(TM)
MigraSpray(TM) is a dietary supplement, containing the herb feverfew,
designed to be sprayed under the tongue before being swallowed. This
sublingual method of administration promotes excellent absorption. Feverfew is
the common name for Tanacetum Parthenium, a flowering plant related to the
chrysanthemum, whose leaves have been used for centuries in herbal remedies for
the treatment of various conditions including migraine and other headaches.
The product has been processed by a proprietary technology to enhance the bio-
effectiveness of the solution. The shelf life of MigraSpray is 2 years. A
bottle will last the average user 3 months. The Company believes, because the
product is a dietary supplement, recent FDA policy changes will allow fuller
disclosure of MigraSpray's potential uses.
LIVING WATER EYE LOTION(TM)
Living Water Eye Lotion(TM) is an eye wash or irrigating solution, used in
cleansing the eye to help relieve irritation, burning, stinging, and itching
due to loose foreign material, air pollutants (smog or pollen), or
chlorinated water.
The solution is a borate buffered, sterile isotonic aqueous solution
containing sodium chloride. It is preserved with a mild preservative, 0.1%
sorbic acid and disodium EDTA (ingredients commonly used in solutions for
sensitive eyes).
In contrast with:
"Eye lubricants," "Artificial Tears," and "Lens Lubricants,"
that contain ingredients which increase fluid viscosity in
an attempt to relieve eye dryness or re-wet contact lenses.
"Eye redness relievers," which contain vasoconstrictors
which can cause eye problems when used too frequently.
Eye drops, which contain antihistamines to treat allergy
symptoms.
Living Water Eye Lotion(TM) is specially formulated to enhance eye comfort
by irrigating, flushing and cleansing without interfering with natural
functions.
The product has generally exceeded the expectations of those who have tried
it.
OPTOPET EYE WASH(TM)
OptoPet Eye Wash(TM) is for cleansing the eyes of dogs and cats, removing
mucous which causes fur stains beneath the eyes (a major problem in certain
breeds).
OTHER PRODUCTS
The Company plans to be introducing several additional products with a wide
range of diet supplement uses in the very near future.
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<PAGE 11>
Diagnostic Products
La Jolla Diagnostics' subsidiary, DiagnosTech, Inc. was organized to
develope and market clinical diagnostic products using immunologic and
molecular biologic technologies.
RAPID DIAGNOSTIC PRODUCTS
DiagnosTech has been developing several self-contained, rapid, point-of-care
diagnostics test. Including tests for:
Active M. tuberculosis (TB) disease
HIV I and II (AIDS) infection using serum/plasma
HIV I and II (AIDS) infection using whole blood
H. pylori infection (the causative agent in over 90% of ulcers)
Hepatitis B (HBsAg)
Pregnancy
Trypanasoa cruzi infection (Chagas disease: a common parasitic infection)
Toxoplasma gondii infection (a common infection among AIDS patients)
The Company believes these diagnostic products to be advantageous secondary
to certain proprietary technology, know-how, and formulations employed by the
Company, and that the TB test in particular has no equivalent in the
marketplace. Each test requires only a very small sample of the patient's
blood, serum, urine, or saliva, as the case may be. Each test gives an
accurate result in 1 to 5 minutes. These tests can easily be performed by any
healthcare worker, semi-skilled technician, or by the patients themselves.
They are extremely rugged, require no refrigeration, and have a shelf life of
12 to 18 months. No special equipment is required to perform any test. Each
test addresses a large and growing market both domestically and
internationally.
Each of the diagnostic tests manufactured and marketed represent
state-of-the-art technology in that they are rapid, accurate, easy-to-use, and
inexpensive. These characteristics make the products ideal for both the U.S.
and overseas markets. Changes in the economics of medicine increasingly favor
products that can be employed economically and effectively at the point-of-
care. Outside of the industrialized world, citizens of emerging economies seek
access to healthcare as a high priority. Tests that address significant
medical needs, are available at a modest price, and require no special
instrumentation, are in high demand.
DiagnosTech has received a great deal of interest for its products,
particularly the TB and HIV Rapid Tests. The Company has also been working
with international distributors to have the products marketed in bulk in
several countries, including China. In addition, recently the Company has
been in contact with large domestic diagnostic companies that are interested
in the rapid diagnostic test for TB.
ANTISERA
DiagnosTech also has a large inventory of anti-sera. This inventory
consists of high quality, purified antibodies, which are needed for basic
research and clinical immunological assays. The primary users of these
antisera products include universities and other research facilities,
clinical diagnostic laboratories, hospitals and clinics, where certain antibody
reagents are used in large volumes.
MYOCARDIAL INFARCTION PREDICTOR
La Jolla Diagnostics has done some work on a novel method of identifying
risk factors for myocardial infarction among a certain subset of mature people.
This product has been transferred to DiagnosTech who, time and capital
permitting, hopes to develop a practical test. Those with this risk factor
are several times more likely to experience morbidity or mortality from a
condition, which may be ameliorated by, changes in living conditions and
life style.
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<Page 12>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART II OTHER INFORMATION
LEGAL PROCEEDINGS
None
CHANGES IN SECURITIES
None
DEFAULTS UPON SENIOR SECURITIES
None
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
OTHER INFORMATION
None
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<Page 13>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
Exhibit 17.2
The Registrant has announced that a letter of resignation from the board of
directors has been received from Bruce Whitfield, and Bob Rist.
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<Page 14>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: February 14, 2000 LA JOLLA DIAGNOSTICS, INC.
By: /s/ Don Brucker
--------------------------
Don Brucker
Chief Executive Officer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 37,121
<SECURITIES> 0
<RECEIVABLES> 4,364
<ALLOWANCES> 0
<INVENTORY> 2,024,285
<CURRENT-ASSETS> 851,911
<PP&E> 84,987
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,675,363
<CURRENT-LIABILITIES> 245,729
<BONDS> 0
0
0
<COMMON> 13,306,873
<OTHER-SE> (12,344,977)
<TOTAL-LIABILITY-AND-EQUITY> 2,675,363
<SALES> 30,423
<TOTAL-REVENUES> 30,423
<CGS> 65,843
<TOTAL-COSTS> 492,264
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,981
<INCOME-PRETAX> (328,126)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (328,126)
<EPS-BASIC> (.02)
<EPS-DILUTED> 0
</TABLE>
